Our philosophy is to identify strategic investments that are -

1) Undervalued public companies due to:

• Undiscovered by market
• Not understood by market
• Lack management breadth but have good projects
• Lack financial resources but have good projects

2) Private companies in global markets that want to list in western public markets within 1 to 2 years

3) Part of a merger and acquisition transaction and require a strategic investor

4) Companies in start up mode or early stage exploration - significant exploration upside

5) Claim acquisitions on prospective ground which need financing to complete the transaction

Selection Process

• No investment to exceed one third of capital allocated for strategic investments
• Rigorous selection process on a case by case basis:
  • Identify opportunities for further evaluation
  • Technical assessment and economic valuation
    • Subjected to a series of filters, including country risk, technical merit, management risk, value to shareholders
    • Key selection criteria is asset quality and ability for asset to produce future cash flow
  • Final decision by investment committee

Generating Wealth for Shareholders

• Increase in net asset value of invested projects if strategic investment in form of joint venture
• Future cash flow if strategic investment in form of royalty or coupon paying instrument
• Return on investment if strategic investment in form of equity